The impact of economic transformation and the credibility of planning control on agricultural land values

This paper develops a hedonic model of agricultural land prices to investigate the efficacy of planning controls, whose raison d’être is to regulate the conversion of farmland. While development (commercial, industrial and residential) potential of farmland affects agricultural land values in all...

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Main Authors:	Khalid, Haniza, Lloyd, Timothy Adrian, Morgan, Christopher Wyn
Format:	Article
Language:	English
Published:	Deutscher Fachverlag GmbH 2013
Subjects:	HD101 Land use HD1401 Agriculture HD72 Economic growth, development, planning
Online Access:	http://irep.iium.edu.my/32765/ http://irep.iium.edu.my/32765/ http://irep.iium.edu.my/32765/1/5_Khalid.pdf

id	iium-32765
recordtype	eprints
spelling	iium-327652013-11-14T08:58:00Z http://irep.iium.edu.my/32765/ The impact of economic transformation and the credibility of planning control on agricultural land values Khalid, Haniza Lloyd, Timothy Adrian Morgan, Christopher Wyn HD101 Land use HD1401 Agriculture HD72 Economic growth, development, planning This paper develops a hedonic model of agricultural land prices to investigate the efficacy of planning controls, whose raison d’être is to regulate the conversion of farmland. While development (commercial, industrial and residential) potential of farmland affects agricultural land values in all countries, its impact is potentially more acute in Newly Industrialised Countries where development pressure is strong and planning law is often weakly enforced. In the Malaysian land market, which epitomises this situation, State Authorities have approved a large number of applications to convert land from agriculture to development, such that the market is inclined to behave as if planning control lacks credibility. To investigate the influence of 'development potential' on land legally designated as agricultural in Malaysia, an extensive dataset of over 2,000 land sales has been assembled. Using this database we attempt to estimate the effect – the development rent – on land price, which turns out to be high, exceeding 400% of agricultural value in some cases. From there, we draw some conclusions regarding the efficacy of existing planning controls and the implications of such a high premium. Deutscher Fachverlag GmbH 2013 Article PeerReviewed application/pdf en http://irep.iium.edu.my/32765/1/5_Khalid.pdf Khalid, Haniza and Lloyd, Timothy Adrian and Morgan, Christopher Wyn (2013) The impact of economic transformation and the credibility of planning control on agricultural land values. German Journal of Agricultural Economics, 62 (2). pp. 134-145. ISSN 0002-1121 http://www.gjae-online.de/aktuelleausgabe/pages/protected/show.prl?params=recent%3D1%26type%3D2&id=720&currPage=&type=2
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HD101 Land use HD1401 Agriculture HD72 Economic growth, development, planning
spellingShingle	HD101 Land use HD1401 Agriculture HD72 Economic growth, development, planning Khalid, Haniza Lloyd, Timothy Adrian Morgan, Christopher Wyn The impact of economic transformation and the credibility of planning control on agricultural land values
description	This paper develops a hedonic model of agricultural land prices to investigate the efficacy of planning controls, whose raison d’être is to regulate the conversion of farmland. While development (commercial, industrial and residential) potential of farmland affects agricultural land values in all countries, its impact is potentially more acute in Newly Industrialised Countries where development pressure is strong and planning law is often weakly enforced. In the Malaysian land market, which epitomises this situation, State Authorities have approved a large number of applications to convert land from agriculture to development, such that the market is inclined to behave as if planning control lacks credibility. To investigate the influence of 'development potential' on land legally designated as agricultural in Malaysia, an extensive dataset of over 2,000 land sales has been assembled. Using this database we attempt to estimate the effect – the development rent – on land price, which turns out to be high, exceeding 400% of agricultural value in some cases. From there, we draw some conclusions regarding the efficacy of existing planning controls and the implications of such a high premium.
format	Article
author	Khalid, Haniza Lloyd, Timothy Adrian Morgan, Christopher Wyn
author_facet	Khalid, Haniza Lloyd, Timothy Adrian Morgan, Christopher Wyn
author_sort	Khalid, Haniza
title	The impact of economic transformation and the credibility of planning control on agricultural land values
title_short	The impact of economic transformation and the credibility of planning control on agricultural land values
title_full	The impact of economic transformation and the credibility of planning control on agricultural land values
title_fullStr	The impact of economic transformation and the credibility of planning control on agricultural land values
title_full_unstemmed	The impact of economic transformation and the credibility of planning control on agricultural land values
title_sort	impact of economic transformation and the credibility of planning control on agricultural land values
publisher	Deutscher Fachverlag GmbH
publishDate	2013
url	http://irep.iium.edu.my/32765/ http://irep.iium.edu.my/32765/ http://irep.iium.edu.my/32765/1/5_Khalid.pdf
first_indexed	2023-09-18T20:47:17Z
last_indexed	2023-09-18T20:47:17Z
_version_	1777409759885918208

The impact of economic transformation and the credibility of planning control on agricultural land values

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